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Auto-parts makers agree to pay $78M in Canadian price-fixing class action
settlements | CBC News Loaded
London
AUTO-PARTS MAKERS AGREE TO PAY $78M IN CANADIAN PRICE-FIXING CLASS ACTION
SETTLEMENTS
Courts in Ontario, B.C. and Quebec have approved settlements of 23 class-action
lawsuits worth $78 million in a series of cases alleging some auto-parts makers
cheated car manufacturers, businesses and new-car buyers in a price-fixing
scheme dating back nearly two decades.
ANYONE WHO BOUGHT A NEW CAR BETWEEN 1998 AND 2016 HAS UNTIL OCT. 30 TO APPLY
Colin Butler · CBC News · Posted: Jun 28, 2023 1:31 PM PDT | Last Updated: June
28, 2023
The settlements in 23 class actions allege auto-parts makers cheated car
manufacturers and their customers in a price-fixing scheme on parts ranging from
air conditioners to braking systems, ignition coils, door latches and throttle
controls installed in new vehicles over an 18-year period. (Getty)
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Courts in three provinces have approved settlements of 23 Canadian class-action
lawsuits worth $78 million in a series of cases alleging some auto-parts makers
cheated car manufacturers, businesses and new-car buyers in a price-fixing
scheme dating back nearly two decades.
The settlements, approved by courts in Ontario, B.C. and Quebec on Wednesday,
are the latest in a series of class actions in Canada that allege a vast
conspiracy to fix prices on a laundry list of 45 auto parts. They range from air
conditioners to braking systems, ignition coils, door latches and throttle
controls installed in new vehicles over an 18-year period.
Businesses and consumers who bought or leased new vehicles sold between July 1,
1998, and Sept. 30, 2016, are eligible to receive $25 per claim in compensation
for the following brands:
* Aston Martin.
* BMW/Mini Cooper.
* Chrysler/Dodge/Fiat/Jeep/Ram.
* Ford/Lincoln/Mercury.
* General Motors
(Buick/Cadillac/Chevrolet/Daewoo/GMC/Hummer/Isuzu/Oldsmobile/Pontiac/Saab/Saturn).
* Honda/Acura.
* Jaguar/Land Rover.
* Mazda.
* Nissan/Infiniti.
* Subaru.
* Toyota/Lexus.
* Volkswagen/Audi/Porsche and Volvo.
Lawyers in the class action stress no wrongdoing has been alleged by the
automakers. Rather, it was the auto-parts companies that are alleged to have
cheated everyone along the supply chain, starting with the manufacturers.
A list of parts, their manufacturers and the individual settlements in the case
can be found here.
SOME COMPANIES COULD CLAIM UPWARDS OF $10K
Linda Visser is a partner with London, Ont.-based Siskinds LLP, one of the law
firms involved in the class action cases.
Visser told CBC News on Wednesday the automakers were the first purchasers of
the price-fixed parts and were ordered by the court to provide customer
information in order to provide notice about the settlement.
"They maintain a lot of this information for warranty purposes. So we were able
to access that information to help with the claims administration process to
make it easier for people to file claims, including the dealers and the end
purchasers of new vehicles."
Linda Visser, a partner with Siskinds law firm based in London, Ont., says the
automakers were the first purchasers of the price-fixed parts. (Siskinds)
Anyone who applies through the class action's website is eligible to receive up
to $25 per claim, according to Visser. While consumers might expect to get less
than $100, some businesses — including dealerships and car rental companies —
can expect to collect up to $10,000 depending on the volume of cars they've
purchased.
Visser said the alleged conspiracy was likely discovered when one of the alleged
conspirators went to the authorities in exchange for amnesty, similar to the way
the Competition Bureau discovered Canada's infamous bread price-fixing
conspiracy after it was reported by Weston and Loblaws, two of the alleged
perpetrators.
"It's the same basic concept," she said. "One of the involved companies, their
legal department gets a hold of it. In exchange for giving up the story, they
get immunity."
According to the settlement website, anyone who bought a new car must rely on
customer information provided by the automakers as proof of purchase. Anyone
eligible will be notified by email or letter between June 28 and July 12 with a
user ID and password to access their information.
Car owners who did not receive a notification during that time are asked to
check their "junk" or "spam" folders.
Lawyers involved in the case say there will be one more settlement coming and
that those eligible would be notified, but gave no date for when the court would
issue a decision.
CORRECTIONS
* An earlier version of this article misstated applicants can potentially
collect "$25 per vehicle," when it is in fact $25 per claim.
Jun 29, 2023 12:18 PM ET
ABOUT THE AUTHOR
Colin Butler
Reporter
Colin Butler covers the environment, real estate, justice as well as urban and
rural affairs for CBC News in London, Ont. He is a veteran journalist with 20
years' experience in print, radio and television in seven Canadian cities. You
can email him at colin.butler@cbc.ca.
* More by Colin Butler:
CBC's Journalistic Standards and Practices|About CBC News
Corrections and clarifications|Submit a news tip|Report error
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